Our goal is to partner with Aboriginal organizations to enable economic development and support their quest for socio-economic prosperity. The Scientific Research & Experimental Development (SR&ED) program can help develop or improve your business's products or processes and is considered the mainstay for innovation and support in Canada.
The SR&ED program's tax incentives may apply to activities in which you are already taking part.
SR&ED activities go beyond those taking place in a traditional research lab. Many companies are not typically perceived as being in the “science and technology” business, but are taking the financial risks that go along with eligible work. Significant project funding incentives are often missed because it's difficult to recognize who is entitled to the claim, particularly when development risks are shared throughout the supply chain.
You could be eligible for SR&ED funding if your company is:
- Developing a new product, device, material, or process
- Improving an existing product, or process
- Working to advance the capabilities of the next generation of your technology
- Collaborating or partnering with other associations and researchers
For Canadian-controlled private corporations, there is an enhanced federal investment tax credit that is refundable even when corporations are in a loss position. There is no maximum claim amount, and the program features varying rates of return:
- Up to 74% of eligible salary expenses can be recovered
- Up to 48% of material costs either consumed or transformed, even temporarily, can be recovered
- Up to 41% of the eligible contract payments paid to eligible arm's length contractors
- Overhead expense can be claimed directly or 55% of salary can be claimed in lieu
The above rates are for SR&ED expenditures after $3M. The rates vary depending on the Province where the SR&ED is being done.
This funding program accepts applications throughout the year.
How can BDO help?
We offer many specialized services beyond year-end audits of financial statements, including assistance with SR&ED claims. With over 300 aboriginal clients, we have extensive experience supporting socio-economic growth within First Nations. BDO Consulting has a number of significant First Nations projects across the country and are well connected with funding agencies and federal and provincial governments which helps our clients to maximize grant funding and any available tax credits.
We mentor our clients to ensure they meet program eligibility requirements, adhere to internal processes and controls for supporting documentation, file the necessary forms and reports, and ultimately improve their overall claim methodology. Successful companies then have the ability to allocate further funding to research and development activities on an ongoing basis. We collaborate with your funding partners to help manage the larger business funding process.
Why BDO?
Global Reach – With offices in 153 countries, our global network can help with your international R&D requirements.
Integration – We integrate with your accounting and tax partners to ensure all advice reflects the needs of your entire organization.
Industry Experts – Our SR&ED professionals have years of actual industry experience. They know your industry, and understand your technology challenges given industry-specific constraints.